A shopkeeper makes a net profit of 44% on selling an article at successive discounts of 10% and 20%. Find the net profit percentage, if the shopkeeper sells the same article at a discount of 15%.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 70%.
Given:
A shopkeeper makes a net profit of 44% on selling an article at successive discounts of 10% and 20%.
Concept used:
1. Selling Price = Marked Price × (1 - Discount%)
2. Selling Price = Cost Price × (1 + Gain%)
Calculation:
Final discount% = 10 + 20 - 10 × 20 = 28% 100
Let the marked and cost price be = 10 + 20 - (10 × 20)/100 = 28% respectively.
According to the question,
MP (1 – 28%) = CP(1 + 44%)
= 0.72 × MP = 1.44 × CP
⇒ MP = 2CP
If a 15% discount is allowed then the selling price
=MP(1 - 15%)
= 0.85MP
= 0.85 × 2CP = 1.7CP
Now, profit% = (1.7CP - CP/CP) × 100% = 70%
therefore The net profit is 70%.